Back
ALOK ARADHE, J. M. KHAZI
Manza Polymers Pvt. Ltd. – Appellant
Versus
Karnataka State Financial Corporation – Respondent
JUDGMENT :
ALOK ARADHE, J.
1. These intra Court appeals emanate from a common order dated 18.09.2018 passed by the learned Single Judge by which the writ petitions preferred by the appellants have been dismissed.
2. Facts giving rise to the filing of these appeals briefly stated are that the appellants are Companies incorporated under the Companies Act, 1956. The Karnataka State Financial Corporation (hereinafter referred to as ‘the Corporation’) is a Corporation established under the State Financial Corporations Act, 1951. The Corporation published e-auction notice in English and Regional newspapers in respect of Property No. 1014/D, Binnamangala 2nd Stage, 17th E Cross, Indiranagar, Bangalore on 27.02.2012. The auction was scheduled to be held on 31.03.2012. The appellant participated in the auction and the bid of the appellant was found to be the highest. The appellant was informed that the bid has been accepted subject to confirmation of the sale. The appellant thereafter was required to remit a sum of Rs. 20,50,000/- which was tendered by the appellant on 31.03.2012. The appellant was required to pay the balance 75% of the bid amount.
3. In the meanwhile, the borrower had submitte
The auction sale under the SARFAESI Act may be annulled on equitable grounds if procedural delays, not attributable to borrowers, prevent confirmation and violate statutory requirements.
The right to redeem mortgaged property under the SARFAESI Act is extinguished once the auction notice is published, indicating no entitlement to challenge the sale thereafter.
The right of redemption is available to the mortgagor until the sale is complete by registration of sale, and the violation of statutory rules may entitle the borrower to redeem the property.
The right to redeem mortgaged property under Section 13(8) of the SARFAESI Act is extinguished upon the publication of a sale notice, as amended in 2016.
(1) Auction sale of secured asset – Unless and until a clear 30 days' notice is given to borrower, no sale or transfer can be resorted to by a secured creditor. Secured creditor cannot effect sale or....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
